He is one of the founders, along with Kevin Dowd and Lawrence H. White, of the Modern Free Banking School,[1] which draws its inspiration from the writings of Friedrich Hayek on denationalization of money and choice in currency.[2] A central claim of the Free Banking School is that the effects of government intervention in monetary systems cannot be properly appreciated except with reference to a theory of monetary laissez-faire, analogous to the theory of free trade that informs the modern understanding of the effects of tariffs and other trade barriers.[3] The free bankers argue that, viewed in light of such a theory, financial crises and business cycles are largely attributable to misguided government interference with freely-evolved and competitive monetary arrangements, including legislation granting central banks exclusive rights to issue paper currency.[4]

Selgin is also known for his research on coinage, including studies of Gresham's Law[5] and of private minting of coins during Great Britain's Industrial Revolution,[6] and for his advocacy of a "productivity norm" for monetary policy—a plan that would have policymakers target the growth-rate of nominal gross domestic product at a level that would allow the overall price level to decline along with goods' real (unit) costs of production.[7] According to Selgin, by preventing mild deflation in response to productivity gains, monetary authorities risk inadvertently fueling unsustainable booms or economic bubbles, setting the stage for consequent busts and recession.[8]

↑Selgin, George (2008). Good Money: Birmingham Button Makers, the Royal Mint, and the Beginnings of Modern Coinage. Ann Arbor: The University of Michigan Press and the Independent Institute. ISBN0-4721-1631-2.